Typically, small business owners always look for tax benefits while buying a car as they cannot afford to keep separate cars for Business and personal use. HMRC understands that and allows personal use of cars taken under business name. But these can only be beneficial if your annual mileage is above 14,500 miles. If you use traditional accounting and buy a vehicle for your business, you can claim this as a capital allowance. If you use cash basis accounting and buy a car for your business, claim this as a capital allowance as long as you’re not using simplified expenses.
If your mileage is below 14,500 miles, then perhaps it is advisable to buy car on personal name and claim mileage. However, this is tedious too, as you will be required to keep record log for your journeys.
Interested to know more? Watch out for our latest blogs and follow us on LinkedIn and Facebook or contact us at info@affinityassociates.com. Through our blogs, we will provide you some really useful insights on how you and your business can benefit from tax loopholes.
So, what to do? Well come to Affinity Associates and we can guide you in the right direction. Affinity Associates is one of the experienced tax accountants in London that serves clients from all over the UK. We have a team of certified and experienced tax accountants in London, who are hardworking and well-versed with the tax compliances in the UK. You can contact our tax accountants in London for any sort of tax advices and tax accounting work.
To learn more about our small business tax accountants in London, and how they can help you, please call us at +44-020-8903-2077 or visit our website at https://www.affinityassociates.com. We will be more than happy to assist you.